Scholar Rock (NASDAQ:SRRK) Reaches New 52-Week High - What's Next?

Key Points

• Scholar Rock shares hit a new 52-week high, reaching $52.39 intraday and closing near that level after rising about 3.5% on the day.
• Recent analyst sentiment remains positive, with multiple firms raising price targets; the stock currently carries a consensus Buy rating and an average target price of $56.00.
• The company’s latest earnings slightly missed expectations, reporting a loss of $0.83 per share versus the expected $0.82 loss, while insiders and institutional investors continue to hold significant positions in the biotech firm.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $52.39 and last traded at $52.2890, with a volume of 319049 shares changing hands. The stock had previously closed at $51.27.

Analyst Ratings Changes

A number of research firms have recently commented on SRRK. JPMorgan Chase & Co. raised their price objective on shares of Scholar Rock from $47.00 to $50.00 and gave the stock an "overweight" rating in a report on Monday, March 16th. Citigroup upped their target price on shares of Scholar Rock from $55.00 to $58.00 and gave the company a "buy" rating in a research note on Wednesday, March 4th. Wedbush increased their price target on shares of Scholar Rock from $56.00 to $58.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 1st. Raymond James Financial restated a "strong-buy" rating on shares of Scholar Rock in a research note on Tuesday, March 3rd. Finally, HC Wainwright lifted their price objective on Scholar Rock from $58.00 to $65.00 and gave the company a "buy" rating in a report on Friday, May 8th. Four investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Scholar Rock presently has an average rating of "Buy" and a consensus price target of $56.00.

Scholar Rock Stock Up 3.5%

The stock has a market capitalization of $6.36 billion, a price-to-earnings ratio of -14.84 and a beta of 0.69. The firm has a 50 day simple moving average of $47.59 and a 200-day simple moving average of $46.10. The company has a debt-to-equity ratio of 0.71, a current ratio of 8.64 and a quick ratio of 8.64.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported ($0.83) EPS for the quarter, missing the consensus estimate of ($0.82) by ($0.01). During the same quarter in the prior year, the business posted ($0.67) EPS. On average, sell-side analysts forecast that Scholar Rock Holding Corporation will post -3.23 EPS for the current fiscal year.

Insider Activity

In other news, CEO David Hallal sold 30,615 shares of Scholar Rock stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $49.57, for a total value of $1,517,585.55. Following the completion of the transaction, the chief executive officer owned 1,639,034 shares in the company, valued at approximately $81,246,915.38. The trade was a 1.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Keith Woods sold 10,220 shares of the business's stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $49.57, for a total value of $506,605.40. Following the completion of the transaction, the chief operating officer directly owned 620,055 shares in the company, valued at $30,736,126.35. The trade was a 1.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 63,491 shares of company stock valued at $3,147,249 in the last ninety days. 13.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Scholar Rock

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Siren L.L.C. grew its holdings in shares of Scholar Rock by 17.0% during the fourth quarter. Siren L.L.C. now owns 10,825,013 shares of the company's stock worth $476,842,000 after purchasing an additional 1,575,008 shares during the last quarter. Redmile Group LLC lifted its position in Scholar Rock by 73.7% during the 1st quarter. Redmile Group LLC now owns 9,066,621 shares of the company's stock worth $445,715,000 after buying an additional 3,845,775 shares in the last quarter. Wellington Management Group LLP grew its holdings in Scholar Rock by 26.7% during the 4th quarter. Wellington Management Group LLP now owns 5,759,428 shares of the company's stock worth $253,703,000 after acquiring an additional 1,213,541 shares during the last quarter. Vanguard Group Inc. increased its position in Scholar Rock by 5.7% in the 4th quarter. Vanguard Group Inc. now owns 5,195,465 shares of the company's stock valued at $228,860,000 after acquiring an additional 280,538 shares in the last quarter. Finally, State Street Corp increased its position in Scholar Rock by 7.2% in the 4th quarter. State Street Corp now owns 4,034,434 shares of the company's stock valued at $177,717,000 after acquiring an additional 271,331 shares in the last quarter. 91.08% of the stock is owned by institutional investors and hedge funds.

Scholar Rock Company Profile

Scholar Rock is a clinical-stage biotechnology company focused on the discovery and development of protein therapeutics that selectively target growth factors involved in disease processes. The company's research platform is designed to modulate endogenous growth factor activation and signaling with high specificity, aiming to restore normal biological function across a range of disorders. Scholar Rock's approach is distinguished by its emphasis on engineering antibodies and biologics that interact with growth factor precursors or latent complexes rather than the active form, potentially offering improved safety and efficacy profiles.

The company's lead program, SRK-015 (appercept), is an investigational monoclonal antibody targeting the activation of latent myostatin proproteins and is being evaluated for the treatment of spinal muscular atrophy (SMA).

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